Back
PAMIDIGHANTAM SRI NARASIMHA, MANOJ MISRA
Oil And Natural Gas Corporation Ltd. – Appellant
Versus
G & T Beckfield Drilling Services Pvt. Ltd. – Respondent
JUDGMENT :
MANOJ MISRA, J.
1. Leave granted. This appeal arises from a judgment and order of the Gauhati High Court1[The High Court] dated 08.03.2019, whereby the appeal (i.e., Arb. A 3/2007) of the respondent, under Section 37 of the Arbitration and Conciliation Act, 19962[1996 Act], was allowed, the judgment and order of the District Judge, Sivasagar, dated 15.11.2007, in Misc. Arb Case No.26 of 2005, under Section 34 of 1996 Act, was set aside and the arbitral award dated 21.11.2004 was affirmed.
FACTS
2. Facts relevant for deciding this appeal are that the appellant suffered an arbitral award, dated 21.11.2004, passed by a three member arbitral tribunal, which directed as follows:
2(i) Claim No.2 relating to the 2nd invoice for dollar 20,729.17 being the outstanding balance is allowed rejecting the claim for interest thereon.
2(ii) Claim No.3 in respect of invoice No.3 for dollar 1,26,536.44 being unpaid balance is allowed without interest.
2(iii) Claim No.4 in respect of invoice No.4 for dollar 30,1401.05 being outstanding balance is allowed. Clai
(1) Post-award interest – If agreement stipulates that no interest is payable, Arbitral Tribunal cannot award interest for the period and an award contrary to terms of contract would be vulnerable to....
The arbitral tribunal can award pendente lite interest unless expressly prohibited by the contractual agreement.
(1) If contract contains a specific clause which expressly bars payment of interest, then it is not open for Arbitrator to grant pendente lite interest.(2) Lawful agreement to refer the matter to arb....
(1) Appeal against Arbitral Award – Grant of post-award interest is conditional in nature and operates as a deterrent against delayed payment, rather than as an automatic or punitive imposition of po....
(1) Arbitrator’s power to grant pendente lite interest – Arbitrator’s power to grant interest would depend on contractual clause in each case and whether it expressly takes away Arbitrator’s power to....
The Arbitral Tribunal's authority to award interest is governed by the arbitration agreement, with specific provisions for pre-award and post-award interest under the Arbitration Act.
(1) Arbitrator in arbitration proceedings being creature of contract has no power to award interest, contrary to terms of agreement/contract between parties.(2) There cannot be estoppel against law.
The Court can entertain challenges based on contract terms, and the applicability of contract clauses can influence the decision to set aside an arbitral award.
(1) Arbitral Tribunal is not bound to award interest – It has discretion to award interest or not to award.(2) Discretion with regard to grant of interest would be available to Arbitral Tribunal only....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
